EXHIBIT (e)(1)
DISTRIBUTION AGREEMENT
AGREEMENT effective this 1st day of March, 2002, by and between USLICO
Series Fund (the "Fund") and ING Funds Distributor, Inc. ("IFDI" or
"Distributor"), a Massachusetts Corporation.
WHEREAS, the Fund is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as a diversified open-end investment company
and
WHEREAS, the Fund offers shares in four portfolios designated as the
Stock Portfolio, the Money Market Portfolio, the Bond Portfolio and the Asset
Allocation Portfolio, such Portfolios together with all other Portfolios
subsequently established by the Fund with respect to which the Fund desires to
retain the Distributor to render services hereunder and with respect to which
the Distributor is willing so to do, being herein collectively referred to as
the "Portfolios".
WHEREAS, the Distributor is registered as a broker-dealer under the
Securities Exchange Act of 1934 and is a member of the National Association of
Securities Dealers, Inc.; and
WHEREAS, the Fund and the Distributor wish to enter into this Agreement
whereby the Distributor will act as the Fund's principal underwriter for the
sale of shares of the Fund to the Accounts;
NOW, THEREFORE, the parties hereto agree as follows:
1. Appointment of the Distributor
The Fund hereby appoints the Distributor as the principal underwriter
and distributor of the Fund to sell shares of the Fund to the Accounts, and the
Distributor hereby accepts such appointment.
2. Purchase of Shares from the Fund
(a) The Fund herewith engages Distributor to act as exclusive
distributor of its shares. Said sales shall be made only to investors eligible
to invest in a registered investment company consistent with such company's
serving as an investment vehicle for variable annuities and variable life
insurance company contracts. The Distributor will hold itself available to
receive by mail, telex and/or telephone, orders for the purchase or redemption
of shares and will accept or reject such orders on behalf of the Fund in
accordance with the provisions of the Fund's prospectus, and will be available
to transmit such orders as are so accepted to the Fund's transfer agent as
promptly as possible for processing at the shares' net asset value next
determined in accordance with the prospectus.
(b) All shares sold by the Distributor under this Agreement shall
be sold at the net asset value per share ("Offering Price") determined in the
manner described in the Fund's prospectus, as it may be amended from time to
time.
3. Redemption of Shares by the Fund
(a) Any of the outstanding shares of the Fund may be tendered for
redemption at any time, and the Fund agrees to redeem any such shares so
tendered in accordance with the applicable provisions of the Prospectus and
Fund's Articles of Incorporation and By-Laws. The redemption price is the net
asset value per share next determined after the initial receipt of proper notice
of redemption.
(b) The right to redeem shares or to receive payment with respect
to any redemption may be suspended only in accordance with applicable law.
4. Duties of the Fund
(a) The Fund shall furnish to the Distributor copies of all
information, financial statements and other papers which the Distributor, may
reasonably request for use in connection with the distribution of the shares of
the Fund.
(b) The Fund shall take, from time to time, subject to the
necessary approval of its shareholders, all necessary action to fix the number
of its authorized shares and to register shares under the Securities Act of
1933, as amended (the "1933 Act"), in order that there will be available for
sale at least the number of shares as investors may reasonably be expected to
purchase.
5. Duties of the Distributor
In selling the shares of the Fund, the Distributor shall use its best
efforts to conform with the requirements of all applicable federal and state
laws and regulations, and the regulations of the National Association of
Securities Dealers, Inc., relating to the sale of such securities. Except as
provided below, the Distributor is not authorized by the Fund to give any
information or make any representations, other than those contained in the
registration statement for the Fund and its shares, the Prospectus, and any
sales literature specifically approved a principal of the Distributor. The
Distributor shall furnish applicable federal and state regulatory authorities
with any information or reports in connection with its services under this
Agreement which such authorities may request in order to ascertain whether the
Fund's operations are being conducted in an manner consistent with any
applicable law or regulations. Nothing contained in this Agreement shall prevent
the Distributor from entering into distribution agreements with other investment
companies. The Distributor shall be without liability to the Fund for any action
taken or omitted by it in good faith without negligence.
6. Allocation of Expenses
(a) The Fund will pay the following expenses in connection with
the sales and distribution of shares of the Fund:
(i) expenses pertaining to the preparation of our audited
and certified financial statements to be included in any amendments
("Amendments") to the Fund's Registration Statement under the 1933 Act,
including the Prospectus and Statement of Additional Information included
therein;
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(ii) expenses pertaining to the preparation, printing, and
distribution of any reports or communications, including Prospectus and
Statement of Additional Information, which are sent to existing shareholders of
the Fund;
(iii) filing and other fees to federal and state securities
regulatory authorities necessary to register and maintain registration of the
shares; and
(iv) expenses of the Fund's Administrator, including all
costs and expenses in connection with the issuance, transfer and registration of
the shares, including but not limited to any taxes and other governmental
charges in connection therewith.
(b) The Distributor will pay the following expenses:
(i) expenses of printing additional copies of the
Prospectus and Statement of Additional Information and any Amendments or
supplements thereto which are necessary to continue to offer shares of the Fund
to the public; and
(ii) expenses pertaining to the printing of additional
copies, for use by the Distributor as sales literature, of reports or other
communications which have been prepared for distribution to existing
shareholders of the Fund or incurred by the Distributor in advertising,
promoting and selling our shares to the public.
7. Records
All records maintained by the Distributor in connection with this
Agreement shall be the property of the Fund and shall be returned to the Fund
upon termination of this Agreement, free from any claims or retention of rights
by the Distributor. The Distributor shall keep confidential any information
obtained pursuant to this Agreement and shall disclose such information, only if
the Fund has authorized such disclosure, or if such disclosure is expressly
required by applicable federal or state regulatory authorities.
8. Duration and Termination of this Agreement
This Agreement shall become effective on the date first written above
or on such later date approved by the Company's Board of Directors, including a
majority of those Directors who are not parties to this Agreement or interested
persons (as such term is defined in the 1940 Act) thereof. Unless terminated as
provided herein, the Agreement shall continue in full force and effect September
1, 2002, and shall continue in effect from year to year thereafter for
successive one (1) year periods if approved at least annually (i) by a vote of a
majority of the outstanding voting securities of the Fund or by a vote of the
Directors of the Fund, and (ii) by a vote of a majority of the Directors of the
Fund who are not interested persons or parties to this Agreement (other than as
Directors of the Fund), cast in person at a meeting called for the purpose of
voting on this Agreement.
This Agreement may be terminated at any time without penalty on at
least sixty days notice by the Fund's Board of Directors or by a majority vote
of its shareholders, with respect to the Fund by a majority vote of the
shareholders of the capital stock of the Fund, or by Distributor on sixty days
notice.
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This Agreement shall terminate automatically in the event of its
assignment.
9. Miscellaneous
This Agreement shall be subject to the laws of the State of
Massachusetts and shall be interpreted and construed to further and promote the
operation of the Fund as an open-end investment company. As used herein, the
terms "Net Asset Value," "Investment Company," "Open-End Investment Company,"
"Assignment," "Principal Underwriter," "Interested Person," and "Majority of the
Outstanding Voting Securities," shall have the meanings set forth in the 1933
Act and the 1940 Act, as applicable, and the rules and regulations promulgated
thereunder.
10. Liability
Nothing contained herein shall be deemed to protect the Distributor
against any liability to the Fund or its shareholders to which the Distributor
would otherwise be subject by reason of willful misfeasance, bad faith or gross
negligence in the performance of the Distributor's duties hereunder, or by
reason of the Distributor's reckless disregard of its obligations and duties
hereunder.
USLICO Series Fund
By: /s/ Xxxxxxx X. Xxxxxx
------------------------------
Xxxxxxx X. Xxxxxx
Executive Vice President
ING Funds Distributor, Inc.
By: /s/ Xxxxxx X. Naka
------------------------------
Xxxxxx X. Naka
Senior Vice President
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SCHEDULE OF APPROVALS
WITH RESPECT TO THE
DISTRIBUTION AGREEMENT
(MARCH 1,2002)
BETWEEN
USLICO SERIES FUND
AND
ING FUNDS DISTRIBUTOR, INC.
LAST CONTINUED/
PORTFOLIOS APPROVED BY BOARD REAPPROVAL DATE
---------- ----------------- ---------------
Asset Allocation Portfolio July 11, 2002 September 1, 2003
Bond Portfolio July 11, 2002 September 1, 2003
Money Market Portfolio July 11, 2002 September 1, 2003
Stock Portfolio July 11, 2002 September 1, 2003
